Misys cuts float value as Brexit volatility bites

Billy Bambrough is the editor of Verdict.co.uk and a freelance business journalist.

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Uncertainty in the market has not been enough to deter Misys from floating (Source: Getty)

Billy Bambrough

Financial technology company Misys has been forced to cut the value of its pending market flotation due to Brexit-induced market volatility.

The company is the latest in a string of firms that has had to dial back or call off plans to list as a result of the UK’s shock vote to quit the European Union in June this year.

Investors have been made nervous by suggestions the UK could leave the EU in a so-called hard Brexit, which would mean leaving the bloc’s Single Market. Formal negotiations are expected to begin in March next year.

However, Misys owner Vista Equity Partners is understood to be preparing to axe more than £1bn off the company’s value to secure a deal. The valuation includes about £1bn of debt on Misys’ balance sheet.

It’s understood Misys has also asked permission to sell only 20 per cent of the company — under the 25 per cent generally required for an IPO.

Vista took the company private in 2012 in a £1.3bn acquisition, a far cry from the £8m valuation Misys was first given when it came to market in 1987.